Question
At the consulting agency, water/wastewater customers fall under two categories: commercial and residential customers. The commercial customers have a demand curve of d1 = 2,750
At the consulting agency, water/wastewater customers fall under two categories: commercial and residential customers. The commercial customers have a demand curve of d1 = 2,750 - 85p1.
While residential customers have a demand curve of d2 = 7,800 - 62p2.
The water/wastewater operation cost is c = $2 per unit or gallon.
If the water/wastewater treatment operation capacity is limited to 5,000 gallons, what should the consulting agency recommend to charging each segment? What is the total profit at this price?
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Managerial Economics
Authors: William F. Samuelson, Stephen G. Marks
8th edition
1118808940, 978-1119025900, 1119025907, 978-1119025924, 978-1118808948
